Presenting 9 of the Best Equipment Financing Companies

Overview of Equipment Financing

Equipment financing providers may fund as much as the total cost of your equipment. However, with equipment prone to depreciation, you may need to make a down payment, typically in the range of 10% to 20%.

One advantage of equipment financing is that the equipment itself typically serves as its own collateral. This can make equipment financing easier to qualify for than other types of small business financing.

Get the machinery you need.

Who Are Some of the Best Equipment Financing Companies?

Many equipment financing providers serve the market today. 

Here’s a roundup of 9 of the best. We’ll look at what types of equipment leasing these providers offer and what amounts of financing they provide. We’ll also review their terms, rates and qualifying criteria.

1. US Business Funding

US Business Funding has been in business since 2008 and serves a wide range of industries and needs, including:

• Agriculture and farming
• Automotive
• Computer hardware
• Software
• Construction and heavy equipment
• Dental
• Dry cleaning and laundry
• Electrical
• Engraving
• Fitness
• Industrial and manufacturing
• Landscape
• Metalworking
• Medical
• Mining
• Office equipment and furniture
• Physical therapy and rehabilitation
• Printing and publishing
• Photography and media
• Production and processing
• Restaurants
• Telecommunication
• Transportation
• Warehousing

US Business Funding offers a variety of leases on new and used equipment, including:

• Fair market value and dollar buyout leases, with application-only limits of $200,000 and higher amounts available with full financials, featuring term lengths of 24 to 72 months
• Wrap leases, with application-only limits up to $75,000, and higher amounts available with full financials, featuring term lengths of 24 to 72 months
• Business expansion equipment financing, with application-only limits of $35,000, and higher amounts available with full financials
• Refinance programs, with application-only limits from $10,000 to $75,000, and higher amounts available with full financials, featuring term lengths of 24 to 60 months
• New business financing, with application-only limits from $5,000 to $50,000 and term lengths of 24 to 60 months; businesses in operation less than 1 year can qualify for financing up to $15,000
• Sales leaseback financing, with application-only limits from $5,000 to $100,000, and higher amounts available with full financials, featuring term lengths of 24 to 60 months
• Working capital financing, with application-only limits from $5,000 to $25,000 in conjunction with financing and $5,000 to $20,000 as standalone, with term lengths up to 36 months

Rates are based on credit history, equipment value and term structure. Lease rates and terms are fixed. Approval typically takes a few hours, and funding becomes available in 1 to 2 days.

To qualify, most lease programs require at least 2 years in business, although exceptions can be made for applicants with strong credit. A program also is available for businesses that have been in operation at least 6 months.

Freelancers can show time in business by verifying a business checking account or providing an income tax return Schedule C. 

Rates: Starting at 3.50%

Pros: 

• 24-hour funding available
• Funding for 100% of lease cost available
• Businesses can apply for up to $75,000 with a 1-page application 
• 4.8-star Google rating and accredited by the Better Business Bureau (BBB) with A+ rating

Cons:

• Additional fees may be required
• Credit score and revenue requirements not specified

2. Crest Capital

Crest Capital has been providing equipment financing since 1989. This Georgia-based lender provides 100% financing for both new and used equipment with a simplified application process and same-day turnaround time available. They allow you to finance equipment from the seller of your choice.

Terms range from 24 to 84 months and amounts can range from $5,000-$1 million. For financing of amounts up to $250,000, Crest Capital offers a 4-hour application turnaround. The firm uses flexible criteria for approval for loans in this range, considering items such as time in business and credit score without requiring extensive financial paperwork. 

Approval criteria for loans greater than $250,000 are stricter, requiring a description of your organization and why you need the equipment, 2 years of financial statements and tax returns, financial information on owners with 20+% interest in your business and information about current leases and loans. Provided all information is in order, turnaround time can be within a business day. 

Rates: Crest Capital does not state its rates, though the company website does note its financing rates are “competitive with a typical bank business loan.” Additionally, some websites indicate its financing starts at 5%.

Pros: 

• Fast turnaround times and 100% financing available
• Equipment from any seller may qualify
• Fixed-rate loans and leases require no blanket liens
• Streamlined applications for financing less than $250,000 

Cons: 

• Administrative fee
• 650 credit score may be required
• Most approved applicants have been in business 2 years or longer
• Loans greater than $250,000 have stricter criteria and require more paperwork

3. National Funding

National Funding is based in San Diego and has been operating since 1999. It offers equipment financing for new and used equipment in a range of industries:

• Commercial fleet vehicles
• Medical equipment
• Restaurant equipment
• Farm equipment
• Office equipment
• Construction equipment

National Funding provides equipment leasing in amounts up to $150,000. Applicants don’t need to provide a down payment. For approval, you need at least 6 months in business, a FICO score exceeding 575 and an equipment quote from a vendor. 

The approval process takes as little as 24 hours. Additionally, National Funding offers a “lowest payment” guarantee: The company will pay you $1,000 cash if you don’t get the lowest lease payment, within reasonable restrictions.

Payments are made monthly, and terms can range 2-5 years. 

Rates: National Funding does not state its rate, though some websites indicate its financing is based on factor rates, which start at 1.09

Pros:

• No down payment required
• Lowest payment guarantee
• New and used equipment leases are available

Cons:

• Funding could take a few days
• Financing can’t exceed more than $150,000 
• The lowest payment guarantee only applies to lease payment comparisons above $10,000, and the competing terms must be issued within 7 days of National Funding’s offer.

4. Currency

Currency is an online lender that has been in operation for more than a decade. The company provides loans of up to $500,000 with terms of up to 72 months, typically 5 years, with 6 years for applicants with stronger credit profiles. Generally, they allow financing for long-haul trucks and trailers with a maximum age of 10 to 12 years in most cases, though there is some flexibility.

Currency has a fast approval process which can take as little as a few minutes, though the time can vary. To qualify, the lender generally requires a FICO score of 625 or more, at least 2 years in business, a commercial credit history and financial information on all owners with at least 10% interest in your business. 

Rates: Currency does not list its rates, though some websites indicate its financing starts at 6%.

Pros: 

• Funding can be quick, sometimes within minutes to hours of approval
• Accredited with the BBB with an A+ rating
• 4-star ConsumerAffairs rating

Cons: 

• 625 FICO score needed
• Private-party sales not eligible for financing
• Extensive documentation could be required for loans greater than $150,000

5. CIT

A division of First Citizens Bank, CIT has roots going back more than a century. The company provides equipment financing for small businesses in amounts up to $500,000 with an application only and up to $1 million with financial paperwork. 

CIT offers term lengths of 6 to 72 months. For larger companies, capital equipment financing is available in amounts from $3 million up to $100 million or more with terms up to 10 years.

Rates: Start at 5.49%

Pros: 

• Funding can be as fast as 1 day
• Loan and lease options 
• Monthly, seasonal and deferred payments available

Cons:

• Requires high FICO score for approval
• Lease ending fee could apply
• Mixed online reviews

6. Better Business Funding

Better Business Funding is based in California and has been operating since 2009. They provide equipment funding for up to $150,000 with a 1-page application and equipment quote only and up to $500,000 with full financials. The company offers loan terms from 24 to 84 months

Rates: Starting at 3.9%

Pros: 

• Flexible financing options
• Large down payments aren’t required
• 4.6-star Google rating

Cons:

• Funding could take at least 2 business days 
• Commercial property insurance is required for equipment financing
• Higher funding amounts could require significant documentation

7. Bank of America

Bank of America has roots tracing back 240 years. The firm offers equipment financing loans for:

• General-purpose equipment, such as office equipment and packing machines
• Heavy-industrial equipment, such as stationary machinery, manufacturing lines and printing presses
• Commercial vehicles, such as trucks and trailers
• Construction equipment

Loans start at $25,000 with terms up to 5 years when secured by business assets and fixed rates are available.

To qualify, you need a minimum of 2 years in business under existing ownership and $250,000 in annual revenue. Applications may be submitted online or over the phone. Funds generally become available within 10 days of approval.

Leases also are available.

Rates: Starting at 3% 

Pros: 

• Low fixed rates for qualified applicants
• Equipment loans and leases are available
• Established bank, recognized as one of America’s Best Banks by Forbes

Cons:

• Qualification requirements may be difficult to meet 
• Origination fees of 0.5% of amount finance
• Time to funding can take nearly 2 weeks

8. Wells Fargo

Headquartered in San Francisco with branches throughout the U.S., Wells Fargo offers financing for the following:

• Commercial vehicles
• Construction equipment
• Technology equipment
• Marine financing
• Vendor financial services
• Solar financing
• Business aircraft
• Railcar leasing and financing

Loans and leases start at $100,000. Terms vary by equipment type. Wells Fargo also maintains an inventory of equipment for sale.

Rates: Competitive fixed or floating interest rates, though not explicitly stated

Pros: 

• Up to 100% financing available
• Financing and refinancing for new and used vocational equipment
• Named one of America’s Best Banks of 2021 by Forbes

Cons:

• Qualification requirements may be difficult to meet 
• 1.07-star rating by BBB reviewers
• Reports of poor customer service from reviewers

9. Balboa Capital

Balboa Capital is an online lender that has been in business for more than 30 years. The firm provides equipment financing for:

• Construction equipment
• Fitness equipment
• Office products
• Cloud software
• Forklifts
• Restaurant equipment
• Commercial trucks
• Manufacturing equipment
• Technology equipment

Balboa Capital finances equipment in amounts up to $500,000. To qualify, you must have 1 year in business, $100,000 in annual revenue and a “decent FICO score,” though all credit is considered. 

The process is application-only for hard collateral up to $500,000 and soft collateral up to $350,000. Approval decisions could be made within an hour and funding could be available the same day.

Rate: Balboa does not list its interest rates, but the company’s equipment financing calculator estimates a $30,000 loan would run $1,371 for 24 months, $954 for 36 months, $747 for 48 months and $623 for 60 months. 

Pros: 

• 1-hour approval decisions 
• Same-day funding available
• Accredited with the BBB with an A+ rating

Cons:

• 1.5-star Yelp rating
• Poor communication according to online reviewers
• More extensive documentation requirements for higher loans

What Items Can You Acquire With Equipment Financing?

Depending on the equipment financing company, this type of funding could be used for items such as these:

• Truck and trailer equipment
• Tractors
• Bulldozers
• Dump trucks
• Cranes
• Machining tools
• Drills
• Lathes
• Milling machines
• Grinders
• Welding equipment
• Assembly line equipment
• Computers
• 3D printers

Additionally, some lenders may specialize in one of these areas, such as heavy equipment financing companies. Equipment financing providers include equipment leasing companies, which specialize in providing funding for rentals, as well as providers who fund equipment purchases. 

Leasing arrangements often are used for items that are likely to become outdated or depreciated before the lease term expires. 

With some leasing arrangements, you may have the option of purchasing the equipment.

What Should I Look for in Equipment Finance Lenders?

When considering equipment finance providers, there are several criteria you can use to evaluate lenders:

• Do they finance leases, purchases or both?
• What types of equipment do they finance?
• Do they finance new or used equipment or both?
• Do they specialize in my industry?
• What are their loan limit amounts?
• How long are their terms?
• What are their interest rates?
• Are personal guarantees mandated?
• What kind of credit scores do they require?
• Do they insist on a down payment?
• Do they require collateral other than the equipment itself?
• What paperwork do they need for applications?
• How long do they take to process applications?
• What do equipment leasing company reviews say about them?

Use this as a checklist to help you evaluate whether a particular lender is right for you.

Find the Equipment Financing You Need

Equipment financing provides one of the most cost-efficient ways to purchase or lease expensive equipment without hurting your cash flow. Because the equipment itself typically serves as collateral, equipment financing represents a relatively low risk to both you and your lender. When evaluating lenders, consider criteria such as loan vs. lease options, loan limits, term lengths and interest rates.

Fast Capital 360 can help match you with equipment financing resources and other types of small business financing. Fill out our no-obligation prequalifying form to see your loan options and find out what types of financing you may qualify for.